Croatia coach Zlatko Dalic pledged "this is not the end" after his team sensationally dumped Brazil out of the World Cup on penalties at the quarter-final stage on Friday.

The match finished 1-1 after extra time, with Bruno Petkovic cancelling out Neymar's brilliant solo opener in the dying minutes.

Croatia, finalists at the 2018 World Cup in Russia, won the shootout 4-2.

Marquinhos missed the crucial spot-kick, hitting the post when he had to score to keep Brazil in it after Rodrygo's earlier attempt had been saved by goalkeeper Dominik Livakovic.

Croatia converted all four of their penalties.

"This is a victory for Croatian people," said Dalic. "A great match. We eliminated the main favourites.

"This is Croatia -- pride, courage, faith and patriotism."

He said his team had risen to the challenge when under the most intense pressure.

"Croatia is the best when it's needed. When it matters, Croatia always succeeds. No one should underestimate us.

"This is not the end, we are moving on. We can achieve a lot."

Croatia will face the Netherlands or Argentina, who play later Friday, in the semi-finals